Blink Fitness, a fitness brand, has voluntarily filed for protection under Chapter 11 of the U.S. Bankruptcy Code in the District of Delaware.
“Over the last several months, we have been focused on strengthening Blink’s financial foundation and positioning the business for long-term success,” Guy Harkless, president and CEO of Blink Fitness, said. “After evaluating our options, the board and management team determined that using the court-supervised process to optimize the company’s footprint and effectuate a sale of the business is the best path forward for Blink and will help ensure Blink remains the destination for all people seeking an inclusive, community-focused gym. We thank our entire corporate and gym team for their continued dedication to our members, as well as our vendors and partners for their ongoing support. We look forward to emerging from this process as an even stronger business.”
In connection with the court-supervised process, Blink has received a commitment of $21 million in new debtor-in-possession financing from its existing lenders. Once approved by the court, this new financing, combined with cash generated from the company’s ongoing operations, will support the business during this process.
Blink Fitness has filed certain customary motions with the court seeking approval to continue to support its operations during the court-supervised process, including paying employee wages and benefits without interruption. The company intends to pay vendors and suppliers in full under normal terms for goods and services provided on or after the filing date.
